Austerity measures demanded of Greece by its European creditors will strengthen the far right, the country’s former finance minister Yanis Varoufakis has said.

Varoufakis also dubbed the bailout agreement reached in Brussels this week as a new Treaty of Versaille, and a coup d’état which used banks instead of tanks.

The Greek government has found itself in a dire political situation after it was forced to accept draconian austerity measures as part of a bailout offer even harsher than the one a national referendum voted no to last week.

The outspoken former minister, who resigned from his role after the national referendum, despite it returning the result he was calling for, told the ABC the far-right Golden Dawn party could “inherit the mantle of the anti-austerity drive, tragically”.

Tall orders in an agreement born of desparation

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“If our party Syriza, that has cultivated so much hope in Greece – to the extent that we managed to score 61.5% in the recent referendum – if we betray this hope and if we bow our heads to this new form of postmodern occupation, then I cannot see any other possible outcome than the further strengthening of Golden Dawn,” Varoufakis said.

Speaking to Radio National’s Phillip Adams in his first post-resignation interview, Varoufakis also said he “jumped more than he was pushed” when he resigned from the ministry.

Prime minister Alexis Tsipras “didn’t have what it took, sentimentally, emotionally, at that moment, to carry that no vote to Europe and use it as a weapon,” said Varoufakis.

“So I … decided to give him the leeway that he needs to go back to Brussels and strike what he knows to be an impossible deal. A deal that is simply not viable.”

Varoufakis said he stood back to allow his successor, Euclid Tsakolotos, and the Greek negotiating team work in Brussels.

“I know very well what it feels like to walk inside those neon-lit, heartless rooms, full of apparatchiks and bureaucrats who have absolutely no interest in the human cost of decision-making, and to have to struggle against them and come up with something palatable.”

Greece was “set up” by eurozone leaders in dealings to address the economic crisis, Varoufakis later told the New Statesman, adding Germany was responsible for the view of the Eurogroup.

“Oh completely and utterly,” he said. “Not attitudes – the finance minister of Germany. It is all like a very well-tuned orchestra and he is the director.”

Varoufakis has previously accused the EU of putting a bailout of French and German banks ahead of Greece’s socioeconomic viability.

After 15 hours of talks that stretched through Sunday night and into Monday, Greece walked away from the emergency summit of Eurozone leaders with a “compromise” bailout package.

Growing anger at the creditors’ wishlist played out on social media under the hashtag #thisisacoup, as the drastic demands made were presented as the price to pay if Greece was to stay in the European union.

The referendum result, and the government’s about-turn, has shocked Greeks who had overwhelmingly rejected the previous offer.

Varoufakis said he had not expected a no vote, and suggested neither had Tsipras.

“I had assumed, and I believe so had the prime minister, that our support and the no vote would fade exponentially, but the Greek people overcame fear, they set aside their pecuniary interests, they ignored the fact their savings could not be accessed, and they gave a resounding, majestic no to what was in the end an awful ultimatum on behalf of our European partners,” Varoufakis said.

Tsipras must now take the measures, which include VAT reform, spending cuts, a pensions overhaul and €50bn in privatisation, to a hostile Greek parliament.